CEPA - Water and Sanitation

CEPA and its staff have advised private sector operators and investors, public utilities as well as regulatory agencies and other government bodies on financial and economic issues relevant to the industry.

During 2003/04 CEPA has advised Ofwat on the appropriate cost of capital in the UK water industry. We have also contributed to debate in the sector, domestically and internationally, including on approaches to engaging the private sector in the delivery of water and sanitation services in developing countries.

Our consultancy services cover:

	Industry restructuring and mergers.
	Financial modelling.
	Privatisation, and private sector participation.
	Valuation and financial issues, including cost of capital.
	Network regulation and regulatory strategy.
	Competition issues.

CEPA is a framework contractor to the water and sewerage regulator for England and Wales (Ofwat) for provision of corporate finance and cost of capital advice.

Case Studies
Review of Ofwat's proposals for menu regulation for Water UK

Ofwat - Cost of capital study in the UK water and sanitation sector

Strategic Investment Board, Northern Ireland - Economic advice, water and sanitation sector

OFWAT - Use of panel and sub-company data OFWAT - Bulk Water Pricing

Severn Trent - Regulatory regime for the periodic review of the water sector.

Cost Benefit Analysis for a private and water company

Publications
Discussion Paper by CEPA and Indepen: Rebalancing Regulation [Summary] [Full Report]

Paper by CEPA and Indepen: Developing the Regulatory Framework [Summary] [Full Report]
Financing the water industry in the UK: Lessons from Price Review 2004